Comparing Early Supplier Involvement( ESI) and Early Buyer Involvement (EBI)
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Definitions of ESI and EBI are arrived at based on extensive literature review and highlighted in block diagrams. ESI is perceived as an outcome of long- term relations and well managed permanent supply-chains which lead to knowledge integration, trust and cooperation and proactiveness. EBI on the contrary is perceived as an initiative to accumulating ‘relational capital’ which leads to ‘product perfection’. Evaluation of applicability and non-applicability of ESI to the four roles of SCM in construction by Vrijhoef and Koskela, 2000 is carried out. ESI is also pictured as ‘early supplier inputs’ as well as ‘early supplier intervention’. The script has been fairly positive on the application of ESI to the 4 roles other than to…show more content… It is the drive to long-term relations with the supply chain and evidence of alertness to combat deception, early and continuous inputs of the buyer’s product perception to achieve product perfection. According to Lawson et al, 2008, integrated activities between buyer’s and supply chains leads to accumulation of relational capital which will aid in enhancing buyer’s performance. EBI could facilitate this sort of interactions to aid in early moulding of its supply chains to match the buyer’s conveniences, communicate product expectations efficiently and thereby achieve product perfection. According to Zhang, Henke Jr and Griffith, 2009, it is the buyer initiated long term relations that allure the supply chain to
1. Invest in technologies such as prototyping in construction with insight into future business inculcating lean principles.
2. Setting up unique delivery and management processes suiting the buyer, outside the contractual frameworks such as buffer inventory, proximal business and production units. EBI accustoms the buyer to the delivery and management processes of its suppliers. It reduces the risk of setting unrealistic targets (even in business equilibrium) and hence avoids propagating stress waves in the supply chain in its struggle to cope up with it (Zhang, Henke Jr. And Griffith, 2009, p.481) EBI could become inevitable in complex, large budgeted projects like terminal-5 to devise well thought of